§6025. Tax credit for Louisiana Citizens Property Insurance Corporation assessment
A.(1) There shall be allowed a credit against Louisiana income tax due in a taxable
year for twenty-five percent of the amount of surcharges, market equalization charges, or
assessments paid by a taxpayer during the taxable year as a result of the 2005 regular
assessment or the emergency assessments levied due to Hurricanes Katrina and Rita by
Louisiana Citizens Property Insurance Corporation for the FAIR Plan and Coastal Plan, as
they are defined in R.S. 22:2292.
(2) Assessment amounts paid before January 1, 2007, shall be claimed and allowed
on the first income tax return that is due on or after January 1, 2007.
(3) Assessment amounts paid on or after January 1, 2007, shall be claimed and
allowed on a form provided by the secretary after the payment is made.
B. Notwithstanding the provisions of Subsection A of this Section, insurers who paid
the 2005 regular assessment levied by the Louisiana Citizens Property Insurance Corporation
and applied a surcharge on their policyholders in order to recoup the assessment as
authorized in R.S. 22:2301 shall not be entitled to receive a credit for the amount of the
assessment they recouped.
C. Notwithstanding any other provision of law to the contrary, any excess of
allowable credit established by this Section over the tax liabilities against which such credit
can be applied, as provided in this Section, shall constitute an overpayment, as defined in
R.S. 47:1621(A), and the secretary shall make a refund of such overpayment from the current
collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, together with
interest as provided in R.S. 47:1624. The right to a credit or refund of any such overpayment
shall not be subject to the requirements of R.S. 47:1621(B). All credits and refunds, together
with interest thereof, must be paid or disallowed within one year of receipt by the secretary
of any such claim for refund or credit. Failure of the secretary to pay or disallow, in whole
or in part, any claim for a credit or a refund shall entitle the aggrieved taxpayer to proceed
with the remedies provided in R.S. 47:1625.
D. Commencing no later than January 31, 2016, the House Committee on Ways and
Means and the Senate Committee on Revenue and Fiscal Affairs shall review the credit
authorized pursuant to the provisions of this Section to determine if the economic benefit
provided by such credit outweighs the loss of revenue realized by the state as a result of
awarding such credit. The House and Senate committees shall make a specific
recommendation no later than March 1, 2017, to either continue the credit or to terminate the
credit.
E. The credit provided for pursuant to the provisions of this Section shall terminate
and shall have no effect beginning January 1, 2020.
Acts 2006, 2nd Ex. Sess., No. 4, §1, eff. Dec. 21, 2006; Acts 2007, No. 382, §1, eff.
July 10, 2007; Acts 2008, No. 415, §2, eff. Jan. 1, 2009; Acts 2015, No. 125, §2, eff. July 1,
2015; Acts 2015, No. 357, §1, eff. June 29, 2015; Acts 2016, 2nd Ex. Sess., No. 9, §1, eff.
June 28, 2016; Acts 2017, No. 400, §§1 and 4, eff. June 26, 2017; Acts 2017, No. 403, §2,
eff. June 26, 2017.
NOTE: See Acts 2015, No. 125, §7, regarding applicability.
NOTE: See Acts 2016, 2nd Ex. Sess., No. 9, §2, regarding applicability.
NOTE: See Acts 2016, 1st Ex. Sess., No. 29, §2, regarding effectiveness.